'Workforce housing' money OK'd in Monroe County

The Monroe County Redevelopment Authority has broken a major barrier to using government money for housing rehab projects in privately managed communities — albeit in a modest way.

DAVID PIERCE

The Monroe County Redevelopment Authority has broken a major barrier to using government money for housing rehab projects in privately managed communities — albeit in a modest way.

The county agency has received a $300,000 grant from Mount Airy Casino Resort proceeds to turn abandoned foreclosed homes in private communities into moderately priced "workforce" housing. The funds — awarded through the state Department of Community and Economic Development — will be used to buy three homes during the next three years for resale to low-, moderate- or middle-income households.

"The county needs housing for 'workforce' income levels: beginning teachers, police officers, medical support personnel, commercial service workers and other essential personnel including employees of the new casinos who look for a decent, safe and affordable place to live," states the successful grant application. "This request seeks to assist this economic problem with public and private cooperation through acquisition, rehabilitation and sale of foreclosed dwellings to workforce residents."

Low- and moderate-income households are "nearly shut out" of the local housing market due to generally higher housing prices than surrounding counties, extremely high school property taxes and a rapid influx of higher income workers from metropolitan areas, according to the application.

"Yet in the last decade the county's number of low-income households has more than doubled," states the request. "Monroe County is continuing to experience one of the highest foreclosure rates among non-urban counties in the Commonwealth."

Privately managed communities — which the redevelopment authority says comprise more than half Monroe County's single-family homes — aren't eligible for many municipal or state services, paying for road work and other infrastructure with dues assessed from community residents. Foreclosed homes in some of those communities remain abandoned for years.

"We're trying to go into some of those areas," said Ray Guernsey, the redevelopment authority's acting executive director. "When you get a bad thorn in a neighborhood, its hurts other houses around it."

The money was awarded from a state-administered program that annually distributes 2 percent of gambling proceeds from Mount Airy to projects in Monroe and surrounding counties. The redevelopment authority expects to buy and resell one home each year for the next three years.

The authority intends to buy foreclosed homes in private community neighborhoods that provide the biggest bang in stabilizing surrounding property values. It will work with Monroe County Habitat for Humanity — a charitable housing group — in rehabilitating the dwellings, using other government grants already administered by the authority to pay for materials.

Banks that assist with the purchases will be eligible for federal tax credits.

Eligible buyers must meet income guidelines and live or work in Monroe County. Buyers will make regular mortgage payments. Those payments will eventually generate income to replenish the $300,000 in seed grants for future home purchases.